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The Regulation of Arms and Dual-Use Exports

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The Regulation of Arms and Dual-Use Exports The Regulation of Arms and Dual-Use Exports Germany, Sweden and the UK Stockholm International Peace Research Institute SIPRI is an independent international institute for research into problems of peace and conflict, especially those of arms control and disarmament. It was established in 1966 to commemorate Sweden’s 150 years of unbroken peace. The Institute is financed mainly by the Swedish Parliament. The staff and the Governing Board are international. The Institute also has an Advisory Committee as an international consultative body. The Governing Board is not responsible for the views expressed in the publications of the Institute. Governing Board Ambassador Rolf Ekéus, Chairman (Sweden) Dr Catherine Kelleher, Vice-Chairman (United States) Dr Alexei G. Arbatov (Russia) Dr Willem F. van Eekelen (Netherlands) Dr Nabil Elaraby (Egypt) Sir Marrack Goulding (United Kingdom) Professor Dr Helga Haftendorn (Germany) Professor Ronald G. Sutherland (Canada) The Director Director Dr Adam Daniel Rotfeld (Poland) Stockholm International Peace Research Institute Signalistgatan 9, SE-169 70 Solna, Sweden Cable: SIPRI Telephone: 46 8/655 97 00 Telefax: 46 8/655 97 33 Email: [email protected] Internet URL: http://www.sipri.se The Regulation of Arms and Dual-Use Exports Germany, Sweden and the UK Ian Davis OXFORD UNIVERSITY PRESS 2002 OXFORD UNIVERSITY PRESS Great Clarendon Street, Oxford OX2 6DP Oxford University Press is a department of the University of Oxford. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide in Oxford New York Athens Auckland Bangkok Bogotá Buenos Aires Cape Town Chennai Dar es Salaam Delhi Florence Hong Kong Istanbul Karachi Kolkata Kuala Lumpur Madrid Melbourne Mexico City Mumbai Nairobi Paris São Paulo Shanghai Singapore Taipei Tokyo Toronto Warsaw and associated companies in Berlin Ibadan Oxford is a registered trade mark of Oxford University Press in the UK and certain other countries Published in the United States by Oxford University Press Inc., New York © SIPRI 2002 First published 2002 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of SIPRI or as expressly permitted by law, or under terms agreed with the appropriate reprographics rights organizations. Enquiries concerning reproduction outside the scope of the above should be sent to SIPRI, Signalistgatan 9, SE-169 70 Solna, Sweden You must not circulate this book in any other binding or cover and you must impose the same condition on any acquirer British Library Cataloguing in Publication Data Data available Library of Congress Cataloguing-in-Publication Data Data available ISBN 0-19-925219-X Typeset and originated by Stockholm International Peace Research Institute Printed in Great Britain on acid-free paper by Biddles Ltd., Guildford and King’s Lynn Contents Preface ix Acknowledgements x Acronyms and abbreviations xi Glossary xiv 1. Introduction 1 I. Background 1 II. The rationale for this study 1 III. The scope, method and conduct of the study 5 Figure 1.1. A model of the arms and dual-use export control policy system 7 Part I. Setting the context 2. Regulation of the global arms market: national and multilateral 19 defence-related export controls past and present I. Introduction 19 II. Why do states develop export controls? 20 III. Why do states control arms and dual-use exports? 22 IV. Elements of a typical national arms export control regime 28 V. Current efforts to apply common controls: how effective are 30 they? VI. Conclusions 42 Part II. The development of common regulatory policies within the European Union 3. The EU Dual-Use Regulation: breaking the supremacy of national 45 sovereignty in arms and dual-use export controls I. Introduction 45 II. The period 1957–89: the supremacy of national sovereignty 46 in arms export control III. The period 1990–95: Maastricht and the first steps towards 51 common arms export policies IV. The development of a common regulation 57 V. The legal structure of the Regulation and Joint Action 63 VI. The EU dual-use export control regime in practice: 72 achievements, limitations and changes Table 3.1. The EU Dual-Use List 68 vi THE R EGULATION OF AR MS AND DUAL- USE EXPORTS 4. Common European measures for controlling conventional 83 weapons: the EU Code of Conduct on Arms Exports I. Introduction 83 II. The deepening of cooperation on export controls in the early 83 1990s III. Towards an EU Code of Conduct on Arms Exports: 1996 90 and beyond IV. The EU Code guidelines and operative provisions 102 Part III. Regulations in practice: national export controls in the UK, Germany and Sweden 5. The regulation of arms and dual-use exports in the United 113 Kingdom: towards a self-regulatory model? I. Introduction 113 II. The policy environment and stakeholders 114 III. The British arms export control regime 126 IV. Policy outcomes 144 Table 5.1. Exports of British defence equipment: deliveries and 115 identified orders, 1975–98 Table 5.2. Major recipients of British arms exports, 1994–96 and 116 1997–99 Table 5.3. ECGD support devoted to defence exports, 1989/90–1997/98 124 Table 5.4. Export licence applications and refusals, late 1970s–1999 140 6. The regulation of arms and dual-use exports in Germany: the 155 legalistic model I. Introduction 155 II. The policy environment and stakeholders 155 III. The German arms export control regime 163 IV. Policy outcomes 181 Table 6.1. Licensed exports of German weapons and dual-use goods, 156 1990–98 Table 6.2. The scope of the German Export List, 1961–99 167 Table 6.3. German export licence applications and refusals, 176 Aussenwirtschaftsgesetz, early 1980s–1997 7. The regulation of arms and dual-use exports in Sweden: the 185 cooperative model I. Introduction 185 II. The policy environment and stakeholders 185 III. The Swedish arms export control regime 196 IV. Policy outcomes 216 Table 7.1. The major Swedish defence companies and their exports of 188 military equipment in 1997 CONTENTS vii Table 7.2. Swedish exports of military equipment, 1970–98 189 Table 7.3. Swedish exports of military equipment in 1996-98 (in 198 accordance with the military equipment classifications) Table 7.4. Export licences granted by Sweden for sales of military 214 equipment, 1989–98 Figure 7.1. Sweden’s interdepartmental cooperation on non-proliferation 212 8. A comparative analysis of the regulatory regimes in the UK, 219 Germany and Sweden: the convergence–divergence mix explained I. Introduction 219 II. Explaining divergence 220 III. Explaining convergence 244 IV. Progress towards convergence: an assessment 248 V. Conclusions 263 Table 8.1. Select military expenditure statistics for Germany, Sweden 224 and the UK, 1988–98 Table 8.2. The value of arms deliveries and market share for Germany, 226 Sweden and the UK: US Bureau of Arms Control and SIPRI data compared, 1987–99 Table 8.3. The value of arms deliveries by France, Germany and the 240 UK, 1986–88 and 1994–96 compared, by recipient region Table 8.4. The number of major conventional weapons delivered by 242 Germany and the UK, 1985–96, by recipient region Table 8.5. Synoptic view of the degree of convergence in British, 249 German and Swedish arms and dual-use export controls, 1985–2005 9. Conclusions 265 I. Convergence 265 II. The key questions revisited 266 III. The next steps in multilateral arms and dual-use export 273 controls Part IV. Appendices Appendix A. National and multilateral statements on controlling 281 arms exports 1. The Guidelines for Conventional Arms Transfers agreed by the 281 five permanent members of the UN Security Council, October 1991 2. The CSCE Principles Governing Conventional Arms Transfers, 282 November 1993 3. Guidelines for international arms transfers in the context of General 283 Assembly Resolution 46/36 H of 6 December 1991 agreed by the UN Disarmament Commission in 1996 viii THE R EGULATION OF AR MS AND DUAL- USE EXPORTS 4. The Nobel Peace Laureates’ International Code of Conduct on 285 Arms Transfers, January 1997 5. The EU Common Criteria for Arms Exports adopted by the 290 Council of Ministers in June 1991 and June 1992 6. The EU Code of Conduct on Arms Exports, June 1998 291 7. Excerpts from the Framework Agreement between France, 294 Germany, Italy, Spain, Sweden and the United Kingdom concerning measures to facilitate the restructuring and operation of the European defence industry, July 2000 8. Criteria to be used in considering licence applications for the export 298 of conventional arms from the UK: statement by the Secretary of State for Foreign and Commonwealth Affairs, 28 July 1997 9. Political principles of the Government of the Federal Republic of 300 Germany for the export of war weapons and other military equipment (statement of January 2000) 10. Excerpts from the Swedish guidelines for the exportation of military 304 equipment and other forms of collaboration abroad, 1992 Appendix B. Other EU documents relating to non-proliferation of 306 conventional arms 1. Articles 223–225 of the Treaty of Rome 306 2. The EU Common Embargo List agreed by the Council of Ministers 306 in 1991 3. The EU Programme for Preventing and Combating Illicit Trafficking 308 in Conventional Arms adopted by the Council of the European Union in June 1997 Select bibliography 310 Index 333 Preface This book, written by Ian Davis, the Director of the British American Security Information Council (BASIC), assesses the development of common policies for the European Union (EU) governing arms and dual-use export controls. The changes that have taken place the world over, in particular the end of the cold war and the collapse of the bipolar system, have not left arms export control policies unaffected.
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